Video settings

Centrelink move?

Could Australia Post take over Centrelink's 'front office' services? Liberal MP Andrew Laming concedes the idea will worry many, but says a limited takeover would have benefits, while Labor's Andrew Leigh slams the idea.

Australia Post offices would not be up to the task of taking on Centrelink work, according to the opposition, who argue that there is more to the welfare agency's job than simply receiving forms or giving out payments.

Labor has dismissed a suggestion that Australia Post offices could take on some work done by Centrelink. Photo: Dave Langley

The Australian Financial Review on Monday reported that the proposal would be looked at within the Commission of Audit.

Advertisement

The proposal comes as the Coalition government looks for budget savings as part of its audit of government spending.

Senator Cameron said the idea of rolling Centrelink services into Australia Post outlets did not make sense.

''I think Centrelink is a very specialised delivery of benefits to Australians,'' he told ABC Radio on Monday.

''I know my local post office would in no way be capable of delivering that services.''

Senator Cameron said that high-level government capacity was needed to look after people who were ''down and out''.

''I don't think the local post office is capable of dealing with that. It's not simply about rocking up, getting your payment,'' he said.

Shadow assistant treasurer Andrew Leigh said he thought vulnerable Australians would be hurt by any move to incorporate Centrelink services into Australia Post outlets.

''The work that Centrelink does is pretty high level work. It's not simply dispensing payments ... People come into a Centrelink office after having lost a job, after having experienced a family breakdown and some of the clients have mental health issues," Dr Leigh told Fairfax Media's Breaking Politics.

''The notion that they could simply be lining up in an Australia Post office, dodging through the stands of calendars and express post envelopes misses what Australia Post does.''

However on Monday morning, a spokesman for Mr Hockey moved to play down the suggestion that Australia Post would take on Centrelink's work, saying there was nothing before the government recommending the move.

The spokesman noted that the Commission of Audit would look at all areas of government, but said he would not speculate on any of its possible recommendations.

Earlier this month, Britain's Royal Mail was sold off in a controversial part-privatisation.

When asked last week if Australia was poised to sell off Australia Post, Mr Hockey argued there was little profit to be made in privatising the postal service.

''Well Australia Post is not the same business model as Royal Mail in Britain or any others,'' he told ABC Radio.

''And frankly, you know, whether it be Australia Post or Medibank Private or any other number of entities, the combined value is very small compared to the debt levels that we've inherited from Labor.''